We have started issuing business debit cards. The business applies for a card, can name who it wants to have cards and how much and what kinds of things it will allow the cardholder to do.

What kinds of issues/liability might come up if we allow a business to issue cards to those that aren't "account signers"?

I guess a lot of it would depend upon your application and card agreement.

In addition to spelling out each Cardholder's access and card limits, our application informs the business owner that cardholders will have access to the designated checking account by card and PIN only, and that we will not honor checks that are written on the account by any cardholder unless they are listed on the signature card as an authorized signer. In the agreement, we have a provision to notify the bank immediately if the cardholder is no longer authorized or employed by the company. We also cover other issues such us not using the card for personal purchases and not transferring the card to another individual for use.

In addition to a resolution signed by an authorized representative on the application, we also require the cardholders to sign to agree to the terms and conditions.